Coronado Corporation issued 6,000, five year, 3% bonds at 103 on January 1, 2023. Interest is paid
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Coronado Corporation issued 6,000, five year, 3% bonds at 103 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Coronado at $9 per share, the price at which Coronado shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 6%. On June 30, 2023, 1,200 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events.
Date | Account Titles and Explanation | Debit | Credit | |
Cash | enter an account title Correct answer | enter a debit amount Correct answer | enter a credit amount Correct answer | |
Bonds Payable | enter an account title Correct answer | enter a debit amount Incorrect answer | enter a credit amount | |
Contributed Surplus - Stock Warrants | enter an account title Correct answer | enter a debit amount Incorrect answer | enter a credit amount | |
| enter an account title Correct answer | enter a debit amount Correct answer | enter a credit amount Correct answer | |
Contributed Surplus - Stock Warrants | enter an account title Correct answer | enter a debit amount Incorrect answer | enter a credit amount Incorrect answer | |
Common Shares | enter an account title Correct answer | enter a debit amount Incorrect answer | enter a credit amount |
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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